Section 179 Tax Break Guide
If you need to purchase commercial vehicles or other costly equipment for your growing Sparta Twp business (or already have), you may qualify for the Section 179 Tax Break. What is that, exactly? The Section 179 Tax Code was originally created by the IRS to help relieve financial burden and promote the growth of smaller to medium businesses, but now it can be utilized by businesses of all sizes. That means business owners like you can write off the full purchase price of qualifying vehicles and equipment for up to a total of $1,000,000 and put those savings toward facilitating growth in other areas of your business!
So, how is this Section 179 tax deduction claimed, and what vehicles and equipment qualify? Let’s take a closer look.
What Vehicles & Equipment Qualify for the Section 179 Tax Break?
In order to qualify for the Section 179 Tax Break, vehicles must meet the following criteria:
- Must have a seating capacity of at least 9 passengers.
- Must have a fully-enclosed driver’s compartment/cargo area with no seating behind the driver’s seat or a body section that extends 30 inches past the windshield.
Do Any Passenger Vehicles Qualify for the Section 179 Tax Break?
Non-commercial vehicles, such as the Honda Ridgeline, may also qualify for the Section 179 Tax Break. However, these vehicles must be utilized by your business at least 50% of the time. Depreciation limits will be reduced by a certain amount if the vehicles aren’t ever used for business purposes. The full Section 179 expense reduction, including bonus depreciation, is a maximum of $11,160 for cars and $11,560 for trucks and vans, with some exceptions:
- Taxis and other transportation vehicles
- Hearses and ambulances
- Select vehicles that have been customized for business purposes
- Heavy, non-SUV vehicles with a cargo area and a minimum length of 6 feet
In order to secure the Section 179 Tax Break, all the vehicles you have purchased or financed must be registered under your business’s name and placed in service by the end of the tax year. If the vehicle you’re interested in does not qualify for the Section 179 Tax Code, Sussex Honda offers a rotating selection of new, used, and certified pre-owned vehicle specials to help you save near Hackettstown and Denville.
Find Out if You Qualify for the Section 179 Tax Break Today!
Ready to find out if you qualify for the Section 179 Tax Break? Don’t hesitate to contact us! We look forward to working with you and helping your business grow.